France


New French Finance Law Published

Posted on January 7th, by Global Tax Weekly in Corporation Tax, Sales Tax. No Comments

On December 30, the French Government published the 2021 Finance Law in the Official Journal.

This included numerous recently announced corporate tax reliefs, including increasing the annual turnover threshold for small companies to qualify for the 15 percent concessionary rate of corporate tax to EUR10m, from EUR7.63m, with effect from January 1, 2021.

In addition, new Article 2b set new withholding tax bands and rates for non-resident individuals’ employment income for 2021, as follows:

income up to EUR15,018, zero percent;
income thereafter up to EUR43,563, 12 percent (or eight percent for recipients situated in overseas French departments); and
income above EUR43,563, 20 percent (or 14.4 percent for recipients in overseas French departments).

Additional measures included reducing the burden of three local level taxes, and proposals to introduce a VAT group regime, enabling groups of companies to be represented by a single entity for VAT purposes and … Read More »


France Implements Digital Services Tax

Posted on December 9th, by Global Tax Weekly in E-commerce. No Comments

France is putting into effect its proposal to impose a 3 percent DST on the revenue of revenue of digital companies providing advertising services, businesses selling user data for advertising purposes, and/or providers of intermediation services.

According to reports, France is now collecting its digital services tax from tech firms, with companies having been given notice that their 2020 DST is due.

Under the new French rules, companies with global revenues of EUR750m (USD811m) or more and French sales of at least EUR25m are required to pay the tax, which was approved by the French parliament on July 11, 2019, and applies to turnover realized in France since January 1, 2019.

The collection of DST instalments originally due in April and October 2020 was postponed until December 2020, in a bid to stop the United States from applying retaliatory tariffs on a range … Read More »


France Announces SME Scheme

Posted on August 31st, by Global Tax Weekly in SMEs. No Comments

The French authorities have been looking to bolster the country’s small business sector, and have announced a scheme to allow small companies to request a specific settlement plan for the payment of their taxes.

The scheme, unveiled by the General Directorate of Public Finance is aimed at micro-, small- and medium-sized firms and sole traders particularly affected by the economic consequences of COVID-19, and covers VAT and withholding tax due for the months of February to April 2020, which should have been paid from March to May 2020. It also covers balances of corporate tax and contribution on added value (CVAE), which was due to be paid between March and May 2020.

Tax debtors will be allowed up to 36 months to pay the tax debts.

Those claiming the relief must have started their business activity no later than December 31, 2019, and … Read More »


France Delays Digital Taxes

Posted on January 30th, by Global Tax Weekly in E-commerce. No Comments

France will suspend digital tax payments for 2020 to prevent the imposition of tariffs on certain French imports into the United States.

The French DST is a three percent tax on the revenue of digital companies providing advertising services, selling user data for advertising purposes, or performing intermediation services. Companies with global revenues of EUR750m (USD838m) or more and French sales of at least EUR25m are required to pay the tax.

The US argues that the tax unfairly discriminates against American companies and is currently considering proposals to impose retaliatory tariffs of up to 100 percent on around USD2.4bn worth of French products.

However, according to various media reports, following discussions between French Finance Minister Bruno Le Maire and US Treasury Secretary Steven Mnuchin against the backdrop of the World Economic Forum in Switzerland, France has agreed not to collect digital tax payments … Read More »


France And US Near Digital Tax Compromise

Posted on January 16th, by Global Tax Weekly in E-commerce. No Comments

French Finance Minister Bruno Le Maire has revealed that France and the United States would be attempting this month to reach a compromise over their ongoing dispute regarding France’s new digital services tax (DST).

The French DST is a three percent tax on the revenue of digital companies providing advertising services, selling user data for advertising purposes, or performing intermediation services. Companies with global revenues of EUR750m (USD838m) or more and French sales of at least EUR25m are required to pay the tax.

The US argues that the tax unfairly discriminates against US-based companies and is currently threatening to retaliate against the measure, imposing additional duties of 100 percent on certain French imports with a trade value of USD2.4bn.

Addressing a press conference alongside the European Commissioner for Trade, Phil Hogan, Le Maire said that France and the US have agreed to “redouble … Read More »


France Plans Online VAT Changes

Posted on October 3rd, by Global Tax Weekly in Sales Tax. No Comments

The French authorities have been busy, unveiling plans on September 23 to ensure the payment of value-added tax on items bought by French residents from online marketplaces, as part of a package of measures included in the 2020 Finance Law.

Under the proposals, announced by Minister of Public Accounts Gerald Darmanin during a visit to an Amazon delivery facility near Paris, online marketplaces facilitating sales between third-party sellers and buyers in France will be liable for VAT on these purchases from 2021.

The reforms will also see the creation of a blacklist of online platforms that fail to comply with certain tax and reporting requirements.

In an additional measure, logistics warehouses will be required to keep a record of the origin and destination of packages, and the amount of VAT due, for a period of 10 years.

The measures will also be accompanied by … Read More »


France And United States Negotiating To Avoid Tariffs

Posted on August 28th, by Global Tax Weekly in Trade. No Comments

The Governments of France and the United States are reportedly close to settling a dispute surrounding France’s digital services tax.

The US President had said that he intended to announce new tariffs on imports of French wine in response to the newly introduced French DST, which the US Government argued unfairly discriminates against US companies.

The French DST imposes a three percent tax rate on the revenue of digital companies providing advertising services, selling user data for advertising purposes, or performing intermediation services. Companies with global revenues of EUR750m (USD835m) or more and French sales of at least EUR25m are required to pay the tax.

The tax, approved by the French Parliament on July 11, 2019, will to apply to turnover realized in France since January 1, 2019, and is expected to affect around 30 companies supplying digital services in France.

The Office of … Read More »


French Digital Services Tax Approved

Posted on July 22nd, by Global Tax Weekly in Corporation Tax. No Comments

On July 11, 2019, France’s proposed digital services tax received Parliamentary approval, following approval from the Senate.

The three percent turnover tax will be imposed (retrospectively on turnover realized from January 1, 2019) on digital companies providing advertising services, selling user data for advertising purposes, or performing intermediation services. Companies with global revenues of EUR750m (USD852m) or more and French sales of at least EUR25m will be required to pay the tax.

The tax is intended to be a temporary measure until an agreement is reached on international digital tax measures at the OECD. However, in the meantime, I’m sure the additional revenue will be welcomed by the French authorities. (Despite being not as much as one might expect, having been estimated at an additional EUR500m per year, from approximately 30 companies.)

For more information on this, and other topical international tax matters, … Read More »


French Tax Authorities To Scan Social media

Posted on November 22nd, by Global Tax Weekly in Tax Avoidance. No Comments

Long gone are the days of invisible ink, candlesticks in libraries, and paper trails. Now the trail that many an investigator must follow, including those detecting for tax evasion, is digital. Indeed, unless you are completely off-grid, it’s probably nigh-on impossible not to leave digital finger and footprints all over the place without even realizing it.

Social media is becoming something of a treasure trove for those looking for people with hidden secrets. Or not so secret secrets, as the case may be. And again, this is a platform that is becoming very useful to the tax man. This was highlighted by French Budget Minister Gerard Darmanin’s announcement last week that the tax authorities will soon begin trawling through peoples’ social media accounts looking for signs that one’s lifestyle doesn’t quite match the humble income declared on one’s tax return. Well, … Read More »


French Tax Authorities Face Legal Difficulties In Google Case

Posted on June 21st, by Global Tax Weekly in Base Erosion and Profit Shifting (BEPS). No Comments

The word substance has become integral to the base erosion and profit shifting project. But it’s also one that appears to be causing businesses and tax authorities the world over significant problems.

Of course, one of the core aims of BEPS is to prevent situations whereby taxpayers get away with double non-taxation. However, as the International Chamber of Commerce pointed out last week, the increased focus by revenue authorities on economic substance combined with a lack of clarity on the definition of the term across jurisdictions is leading to more cases of income being doubly taxed, rather than the other way around.

Facing the prospect of being wrongly taxed, taxpayers have little choice but to fight it out in the tax tribunals and appeals courts, which even in the most advanced countries is usually an expensive, time-consuming process, and risky if litigation … Read More »





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